ValuEngine Weekly, December 3, 2010

The ValuEngine Weekly is an Investor Education newsletter focused on the quantitative approach to investing and the tools available from ValuEngine. In today's fast-moving and globalized financial markets, it is easy to get overloaded with information. The winners will adopt an objective, scientific, independent and unemotional approach to investing. If you are not yet a member of ValuEngine's stock analysis service, sign up now for a two-week free trial atwww.valuengine.com!

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As a bonus to our Free Weekly Newsletter subscribers, we are now offering a FREE DOWNLOAD of one of our $ 25.00 Detailed Valuation Reports.

This week's free download is our report on Northrop Grumman Corporation (NYSE:NOC). ValuEngine has issued a STRONG BUY recommendation for Northrop Grumman. Based on the information we have gathered and our resulting research, we feel that Northrop Grumman has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE company size, volatility and P/E ratio.

Based on available data as of Dec. 03, 2010, we believe that NOC should be trading at $68.46. This makes NOC 6.47% undervalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. For NOC, we base this on actual earnings per share (NYSEARCA:EPS) for the previous four quarters of $6.06, forecasted EPS for the next four quarters of $6.45, and correlations to the 30- year Treasury bond yield of 4.27%.

Northrop Grumman Corporation is a high technology company providing innovative solutions in systems integration, defense electronics and information technology for its U.S. and international military, government and commercial customers, as a prime contractor, principal subcontractor, team member or preferred supplier.

Subscribers can check out the latest figures onNOC from our models HERE.

If you have not subscribed and want to be able to receive a FREE $ 25.00 Detailed Valuation Report, you can subscribe to our Free Weekly NewsletterHERE.

ValuEngine Index Overview

Index

Week Open

Thurs. Close

Change

% Change

YTD

DJIA

11083.75

11362.4

278.65

2.51%

8.72%

NASDAQ

2522.24

2579.35

57.11

2.26%

13.69%

RUSSELL 2000

732.71

751.2

18.49

2.52%

18.17%

S&P 500

1189.08

1221.53

32.45

2.73%

9.23%

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ValuEngine Market Overview

Summary of VE Stock Universe

Stocks Undervalued

44.18%

Stocks Overvalued

55.82%

Stocks Undervalued by 20%

20.88%

Stocks Overvalued by 20%

24.76%

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ValuEngine Sector Overview

Sector

Change

MTD

YTD

Valuation

Last 12-MReturn

P/E Ratio

Basic Materials

1.32%

1.39%

28.99%

23.68% overvalued

59.52%

35.33

Oils-Energy

1.51%

1.59%

15.08%

22.48% overvalued

44.15%

43.85

Multi-Sector Conglomerates

0.99%

1.02%

22.14%

11.95% overvalued

32.59%

33.31

Auto-Tires-Trucks

1.76%

1.87%

48.12%

10.08% overvalued

53.23%

36.03

Transportation

0.98%

1.03%

23.13%

7.77% overvalued

28.40%

40.05

Industrial Products

1.29%

1.37%

22.84%

6.78% overvalued

29.28%

28.09

Retail-Wholesale

0.31%

0.39%

17.70%

6.31% overvalued

59.94%

26.40

Aerospace

0.70%

0.74%

18.66%

4.88% overvalued

31.51%

19.67

Utilities

0.33%

0.38%

5.22%

4.06% overvalued

14.80%

27.83

Computer and Technology

1.13%

1.21%

25.65%

3.83% overvalued

33.49%

41.33

Consumer Staples

0.46%

0.53%

8.37%

3.46% overvalued

17.80%

22.10

Business Services

1.25%

1.39%

10.35%

2.84% overvalued

22.07%

30.27

Finance

1.19%

1.25%

15.82%

2.75% overvalued

15.63%

29.91

Consumer Discretionary

0.45%

0.52%

19.80%

0.56% overvalued

27.36%

31.07

Construction

2.75%

2.91%

6.41%

2.44% undervalued

9.27%

38.56

Medical

0.35%

0.41%

12.08%

6.29% undervalued

16.42%

33.78

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Sector Talk--Retail-Wholesale

Below, we present various top-five lists for the Retail-Wholesale Sector from our Institutional software package (Pending:VEI). These results were filtered by market price and volume--no results below 3$/share or less than 100k shares/day volume.

Top-Five Retail-Wholesale Stocks--Short-Term Forecast Returns

Ticker

Name

Mkt Price

Valuation(%)

Last 12-M Retn(%)

SVU

SUPERVALU INC

8.66

-37.06

-37.97

AHONY

AHOLD N V ADR

12.33

-59.26

-8.94

NSIT

INSIGHT ENTRPRS

12.93

-21.79

21.29

WMT

WAL-MART STORES

54.75

3.19

2.59

JACK

JACK IN THE BOX

20.62

-33.25

8.7

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Top-Five Retail-Wholesale Stocks--Long-Term Forecast Returns

Ticker

Name

Mkt Price

Valuation(%)

Last 12-M Retn(%)

AHONY

AHOLD N V ADR

12.33

-59.26

-8.94

WMT

WAL-MART STORES

54.75

3.19

2.59

EBAY

EBAY INC

29.91

5.07

25.88

TGT

TARGET CORP

59.65

-5.3

27.02

CVS

CVS CAREMARK CP

31.98

-6.02

3.9

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Top-Five Retail-Wholesale Stocks--Composite Score

Ticker

Name

Mkt Price

Valuation(%)

Last 12-M Retn(%)

M

MACYS INC

25.54

-9.99

58.34

DPZ

DOMINOS PIZZA

14.87

-25.77

90.89

TLB

TALBOTS INC

11.43

-39.57

69.33

AHONY

AHOLD N V ADR

12.33

-59.26

-8.94

RVI

RETAIL VENTURES

16.48

-21.96

111.01

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Top-Five Retail-Wholesale Stocks--Most Overvalued

Ticker

Name

Mkt Price

Valuation(%)

Last 12-M Retn(%)

BKS

BARNES & NOBLE

13.06

99.09

-40.61

BJRI

BJ'S RESTAURANT

38.1

87.32

111.9

CHUX

OCHARLEYS INC

7.06

86.65

3.07

NFLX

NETFLIX INC

193.42

75.58

227.83

IACI

IAC/INTERACTIV

29.35

75.36

52.71

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Subscribers can check out the latest valuation, forecast, and ratings figures on the Retail-Wholesale Sector from our Models HERE.

With all of the recent market uncertainties, making the correct stock decisions can be daunting. ValuEngine Chief Market Strategist Richard Suttmeier will be appearing at the AAII Orlando Chapter meeting on January 19, 2011. We invite all VE clients in Florida to attend. At the meeting, Suttmeier will discuss the following topics:

How ValuEngine.com can help investors adapt to volatile and risky market conditions

How to implement a hedge fund-type strategy for your own stock investment portfolio

How ValuEngine’s research helped me call both the top and the bottom of the market over the past five years

This meeting will take place at the University Club of Winter Park, 841 N. Park Ave. Winter Park, FL 32789. It starts at 6:30pm. Again, all VE clients are invited. We place a special call out to those seeking individual investment advice, assistance, and portfolio management.